Two papers from Goldman Sachs and Citigroup examine the present and potential of the global creator economy. According to both studies, the creator economy is an ecosystem in which people produce content for digital consumption in an effort to grow their following and monetize their brands. According to Goldman, there are already 50 million creators in the globe, 96% of them are amateurs making just modest incomes and the remaining 4% are professionals making over $100,000 annually. By 2027, the economy, according to Goldman, might reach $480 billion.
Concentration of income and the absence of a middle class
According to Citigroup, there are over 120 million content creators in the world, who will bring in about $60 billion in revenue this year and $75 billion by 2024. The reports show, however, that income is concentrated around a small number of megastars, with a huge gap where a mid-level good income might be. In the creative economy, where 90% of Substack income originate from less than 10% of writers and 90% of YouTube followers come from less than 5% of channels, the Pareto Principle does not hold true. Because there isn’t a middle class, there are questions about whether the creative economy is really as democratic as it seems.
Growth of platform providers versus income of creators
Although these ratios might not be an issue for brokers trying to sell this tale to investors, they are problematic for content producers. The market’s concentration of profits among a select group of creators and platforms that offer pitiful compensation for fresh content may deter creators from entering it. A more democratic creator economy might not even be possible with alternate revenue sources.
Advice on a Career for Aspiring 10-Year-Olds
Despite being a fascinating economy of commercialized, democratized material, the reports show that the creator economy has not produced its own middle class. It could be best for ambitious 10-year-olds to hold onto the day job or the dream of gaining one. Elite influencers may receive content from businesses and other marketing channels in an astonishing flow. The creator economy does not appear to be as democratic as it first appears, however, due to revenue concentration and the absence of a middle class.
Source: ©Matthew Ashton – AMA/Getty Images ; Financial Times
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Yustika Kusuma Putri, she is social media marketer from Indonesia. I currently work as a Media Manager in Technologie Omicrom Sendas inc.
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